[3002 tii]

I was recently involved in a 5 car accident. My 1.5 year old, well optioned X3 xDrive35i sustained over 20k in damages (all aesthetics, frame and motor are fine). I always read people talk about diminished value claims here...

Has anyone actually successfully received compensation from the liable party's insurance company? I spoke with my insurance and they said they only go after collision but this falls under "3rd party claim" so I'd have to take it up myself. I don't mind lawyering up or getting an appraisal but wondering what's the probability of actually winning a DV claim? Or is this like winning an inheritance from my never met uncle in Africa but I just have to wire him $2000 to claim my prize?

FYI don't care about the breakeven math of time, legal fees, etc. I simply want to know if anyone's actually filed the claim and received compensation.

[oolas3]

Correct it's a 3rd party claim against his insurance company. You have to notify the company that you are making a claim against their policy as a 3rd party. I believe a very few states even allow DV against your own policy (1st party claim) under certain circumstances but don't quote me on that. My state does not.

Your case is so extreme in loss I recommend you hire your own appraiser (licensed in your state) to put together a DV report for you. I would then present that report to the insurance company and demand you be made whole. If they don't do the right thing, then contact a lawyer or go to small claims court yourself.

[JAYRICHFROMMIAMI]

Obtaining the services of a state-licensed appraiser is a great idea but the license doesn't have to be from any particular state. It is just a credential as to the appraiser's expertise. In reality, no license in even necessary to do diminished value appraisals. Indeed, most of the independent appraisers say they are certified or some other nonsense but very few are licensed anywhere.

To answer your question, insurance companies pay out thousands of dollars every day for third-party diminished value claims.

[bodega_cat]

I'm currently involved in a lawsuit with my insurance company over damages they did not adequately compensate for. And part of that lawsuit is the diminished value. I got a diminished value appraisal, forwarded it to my lawyer, and he sent the insurance co a demand letter with a copy of the appraisal. They did not respond, so court service has been initiated. If your state has a law on diminished value, by all means, pursue it. Insurance companies will gladly fail to mention it to you so they won't have to pay.

In addition to the above, I had a minor accident some years ago. I was young and didn't know much about the whole diminished value thing. Of course the Geico sure as shit didnt mention anything to me. When I was setting up the appraisal of the new damage, I mentioned to the appraiser this previous accident. He asked if I received DV, and I responded no, I had no idea what it was at the time. He encouraged me to call Geico (which I wasn't even insured through anymore) and inquire about the DV. He stated that you have 3 years to file for DV (in GA at least). I called up Geico, they looked into it, and a week later, I received a check.

[3002 tii]

Originally Posted by greenc51

I'm currently involved in a lawsuit with my insurance company over damages they did not adequately compensate for. And part of that lawsuit is the diminished value. I got a diminished value appraisal, forwarded it to my lawyer, and he sent the insurance co a demand letter with a copy of the appraisal. They did not respond, so court service has been initiated. If your state has a law on diminished value, by all means, pursue it. Insurance companies will gladly fail to mention it to you so they won't have to pay.

In addition to the above, I had a minor accident some years ago. I was young and didn't know much about the whole diminished value thing. Of course the Geico sure as shit didnt mention anything to me. When I was setting up the appraisal of the new damage, I mentioned to the appraiser this previous accident. He asked if I received DV, and I responded no, I had no idea what it was at the time. He encouraged me to call Geico (which I wasn't even insured through anymore) and inquire about the DV. He stated that you have 3 years to file for DV (in GA at least). I called up Geico, they looked into it, and a week later, I received a check.

I have Geico as well and it's weird they're telling me they have nothing to do with this and this would be something I need to pursuit oh my own (time and money) against the other party's insurance.

[bodega_cat]

Originally Posted by 3002 tii

I have Geico as well and it's weird they're telling me they have nothing to do with this and this would be something I need to pursuit oh my own (time and money) against the other party's insurance.

If the other party is responsible for the damage, and your car is being covered by the other party's insurance, then yes, you would pursue the DV through them. If they give you hassle, I suggest you lawyer up.

[Fast4d]

I hit a car that ran red light. her insurance pay DV to me.

I went to a lawyer cause of back and neck pain. they handled every thing

[3002 tii]

Originally Posted by Fast4d

I hit a car that ran red light. her insurance pay DV to me.

I went to a lawyer cause of back and neck pain. they handled every thing

Can you pm me how much you got for just the DV? So you didn't hire an appraiser?

[lorinzo]

More often than not . . . you cannot collect from your own insurance company because diminished value claims are excluded from your insurance policy.

Assuming your jurisdiction allows for diminished value claims and you had nothing to do with causing the accident . . . if some other person causes damage to your car and the repairs do not restore the car to its pre-damaged value, then, the other driver (and his/her insurance company) is required to compensate you for all of your damage.

Your event ($20k in repairs) will likely show up on a CarFax (or similar) report. From that point forward, the car will have a black cloud hovering over it. When you go to sell, some potential buyers will never contact you because they do not want to assume the risk of future problems. As a result, you will have fewer buyers which generally results in a lower sale price. The buyers that do contact you will throw the CarFax report in your face and push for a lower sale price. When you go to trade, the dealership will tell you that because of CarFax report your car does not meet their "certified pre-owned" requirements and offer you less in trade value. This loss was caused by the other driver and you should be compensated for this.

You are going to have to fight for your diminished value claim. There is no established formula. The other side is going to argue that they paid to fix your car and that “diminished value” claims are speculative. While it is true that you will not know the exact extent of your diminished value until you actually sell or trade the car, there can be little dispute that your car has less value simply because it has been “tagged” as being involved in an accident.

You should hire an automotive expert to evaluate the car, analyze the extent of damages and prepare a report as to his/her opinion as to the diminished value.

Best of luck.

[Efthreeoh]

I've made and received a DV claim. You just make the claim the the responsible party's claim adjuster handling your case. The laws and process are dictated by the state the claim is being made in. Generally, you can negotiate it on your own, or find an indpendent apprasier to develop a pre-accident value for the car and a recommended DV amount, but in the end it is still a negotiation between you and the insurance company. I just negotiated it on my own. Don't expect a windfall. I did just because the responible party in my claim was an asshole in court, so I decided to get some more money out of him just for spite.

[aerostar]

I saw someone got in an accident (~10k damages) in a 2015 M235i.

Got something like $12,000 for DV, but the car was nearly brand new.

[Stevens21234]

Does diminished value apply in Cali and other west coast states?

[Three Pedal Steve]

Once that insurance claim is made against a specific VIN, it will be in the CarFax report- forever effecting resale value. DV should be a consideration in every insurance claim.

[oolas3]

Good state specific info here: http://www.ican2000.com/dvfaqs.html

[bodega_cat]

Anyone know if I can still get diminished value if I sold the car and moved on to something else?

[oolas3]

Originally Posted by greenc51

Anyone know if I can still get diminished value if I sold the car and moved on to something else?

Yes as long as it was within the statue of limitations in your state. Most states give you several years to make a claim.

[ShocknAwe]

Realistically the accident history of the car in question matters a lot as well. So if your X3 was a collision virgin, you have a stronger case for diminished value.

[shadow191]

It's highly dependent on what state you're in and who the insurer is. In GA, it's easier because it was one of the earlier states that started allowing diminished value and I think one of the formulas used is based on a lawsuit here. Over the years, I received 2 checks from State Farm for diminished value without ever filing the claim. Basically they paid the claim and then a few weeks later, I got a check explaining diminished value and how they calculated. Another time, the other party was insured by Allstate and I had to ask, but as soon as I did, they paid the claim using a similar formula.

Having said that, a couple of years back, I was involved in an accident and Geico was the one responsible for repairs (other driver). I asked about diminished value and they basically had no idea what I was talking about. As in literally they couldn't answer any questions and didn't know the process. They punted me to the manager at their body shop and he cut me a check for "loss of use". The repairs weren't significant so I didn't really care.

For $20K, I'd definitely pursue it. Your carfax is already going to have that accident record so you're going to have a diminished value when you sell. Have you called the other party's insurance yet? They may start the process without an attorney. Typically they'll use a formula based on what was damaged - frame or cosmetic only, etc. If you don't like their number, then maybe get a DV consultant involved. But it's kind of a shady business, they're basically ambulance chasing and since there are no set rules on the claims, they may provide no value.

[9krpmrx8]

I got $13000.00 in DV fro my boss on a 2006 CL65 AMG when it was damaged when a dealer employee took it on a 68 mile joy ride and damaged a fender and two wheels ($3000.00 a piece from the dealer). I also got $1200.00 for my GF back in 2009 on her then new Corolla when she was rear ended. And finally, I got $2800.00 in DV on a new X3 that was rear ended (low impact, slight damage) when only a month old.


The process can vary but I just found similar cars for sale and compared those with no accident history to those with accidents history and negotiated an amount. There is a technical way of doing it though with a formula, but it varies by location.

[3002 tii]

Spoke with a senior claims manager from my insurance and they said I'll have to go after them myself. Sucks but no other way about it.

[F87LUV]

I've done this twice. No lawyers involved. All I did was write a very nice...letter to the other driver's insurance company with print outs from kbb.com- one with the value of the car without any accidents and one with. I simply asked for the difference in value in the letter. They never questioned it and cut me checks.

[bodega_cat]

Originally Posted by 3002 tii

Spoke with a senior claims manager from my insurance and they said I'll have to go after them myself. Sucks but no other way about it.

just call the other party's insurance and ask about it. It might be a simple process, you never know.